GBP/USD climbs to new multi-week highs around 1.2380

GBP/USD gathers fresh upside traction and approaches 1.2400.
The greenback accelerates losses and trades closer to 102.00.
US final Q4 GDP Growth Rate disappointed estimates.

Pablo Piovano FXStreet

Further losses in the greenback allow GBP/USD to pick up extra pace and reach the 1.2380 region, or multi-week highs, on Thursday.

GBP/USD stronger on USD-selling

GBP/USD sees its upside pressure intensify on the back of the persistent selling pressure in the greenback and the solid improvement in the risk complex on Thursday. The marked knee-jerk in the dollar came in response to higher-than-expected inflation figures in Germany, which could reinforce the case for further tightening by the ECB as soon as at the May gathering.

In the meantime, price action around the British pound appears underpinned by the better tone among its risk-linked peers, while the continuation of the hiking cycle by the BoE should offer some extra support to the quid despite the "Old Lady" could be approaching its peak on rates.

There were no data releases across the Channel on Thursday, while US GDP Growth Rate expanded below consensus 2.6% YoY in Q4 and Initial Jobless Claims rose by 198K in the week to March 25.

GBP/USD levels to consider

As of writing, the pair is gaining 0.40% at 1.2361 and the breakout of 1.2380 (monthly high March 30) would open the door to 1.2447 (2023 high January 23) and then 1.2666 (monthly high May 27 2022). On the other hand, the next support emerges at 1.2160 (55-day SMA) followed by 1.2010 (weekly low March 15 and finally 1.1892 (200-day SMA).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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